Exhibit 99.271 BUSINESS RISKS & OPPORTUNITIES IN THE RESTRUCTURED CALIFORNIA ENERGY MARKET DISCUSSION POINTS FOR MEETING WITH PACIFIC ENTERPRISES WEDNESDAY, MAY 22, 1997 ROSEMEAD, CA 06/27/02 1 IMPACT OF RESTRUCTURING IN CALIFORNIA >> Decentralized market >> Vastly increased market participants with diverging business objectives >> Ever-changing business protocols - need to keep up >> Financial risks and opportunities for all market participants >> Can strategize interaction with the market to maximize profit or minimize risk 06/27/02 2 WHERE ARE THE BUSINESS RISKS AND OPPORTUNITIES? >> Sample business risks o UDC: o Over-payment to PX due to gaming by others and/or undercollection (particularly due to PBR) o Impact on reliability and service quality o Supplier: o Not recovering costs due to poor pricing or not getting selected to generate >> Sample business opportunities o UDC: Use PBR to make money for shareholders o Supplier: Select bidding strategies for various commodities and various markets to provide the highest yeild - plenty of "market gaming" strategies 06/27/02 3 06/27/02 4